In a non-hybrid vehicle, an inertia torque is transmitted to the driveline during transmission shifts. This results in a boost in the transmission output torque which may impact vehicle performance and cause driveline disturbances. In a hybrid electric vehicle, the inertia torque transmitted to the driveline may be larger than that of a non-hybrid vehicle due to the addition of the electric motor and disconnect clutch. Torque modulation, a form of transmission input torque reduction, may be employed to compensate for inertia torque and may be achieved by using engine spark retard or the electric machine. Spark retarding may cause a possible engine misfire. The electric machine may not have enough torque at higher speeds to effectively provide torque modulation.